Get ready for a point-of-sale POS market shakeup. GoPago, a company backed by financial services giant JP Morgan Chase, has created an integrated tablet-based POS solution that it will give away for free -- charging only a 2.85 percent transaction fee for purchases that are processed using it.

The system, called GoPago LIVE, combines an Android-based Motorola Xyborg tablet with Verizon Wireless 4G service, plus a card swiper, a stand, a cash drawer and receipt printer. The application runs in the cloud and uses the Chase Paymentech encrypted payments service.

Rather than charging a fee for the equipment, GoPago has opted to give it away and charge only for the financial services that back it. "Small businesses have been gouged by POS solutions, we have been listening to them," said GoPago CEO Leo Rocco. The company chose an Android-based tablet in order to keep the cost of the system down and to ensure that merchants could use it out-of-the-box, he said.

The GoPago system has been tested by approximately 600 merchants in the San Francisco area, and the company is seeking to connect with stores that are generating less than $1 million annually (although it works with customers that are above and below that amount). The system will be available nationwide by the middle of August, Rocco said.

Among some of the features that SMBs can expect:

- The ability to export data to Excel files for processing and reporting (there is also a programming interface that can be used to connect it with other financial software)